The United States has taken a big step toward regulating stablecoins with the signing of the GENIUS Act by President Donald Trump on July 18, 2025. This is the first federal law to set clear rules for stablecoins, which are digital tokens linked to the U.S. dollar. Supporters believe the law could help make stablecoins part of everyday payments and money transfers, but experts warn that it will not be an easy road.
Many large companies are already exploring ways to join the stablecoin market. Big financial names like Bank of America, Citigroup, and Fiserv have shown interest, along with retail giants such as Walmart and Amazon. Some are thinking about creating their own stablecoins, while others may choose to use existing ones, like USDC. The decision will largely depend on each company’s goals.
Stablecoins can be used in different ways. For example, a retail store could allow customers to pay for goods with its own stablecoin, making the process faster and possibly cheaper. Businesses could also use them for cross-border payments, which are often slow and expensive with traditional banking systems. However, before launching any new token, companies must decide whether they want to focus on improving customer experience or creating a widely accepted payment method.
Despite the potential, the new law brings challenges. All stablecoin issuers will need to follow strict rules such as anti-money laundering (AML) and Know Your Customer (KYC) checks. This means verifying users’ identities and screening for illegal activities. While banks already have systems for these requirements, nonbank companies may face high compliance costs to meet the new standards.
For banks, there are even more considerations. They must look at how holding stablecoins on their balance sheets will affect their liquidity and capital requirements under U.S. banking rules. If stablecoins are treated as certain types of assets, banks may be required to hold more capital as a safeguard.
Technology choices will also play a role in stablecoin development. Public blockchains like Ethereum and Solana are popular and open for anyone to view transactions. However, banks may prefer private blockchains, which allow for more control and stronger governance. This decision could shape how stablecoins are used and trusted in the market.
Even though the GENIUS Act has been signed, experts say full implementation could take years. Additional rules from federal banking regulators are expected to cover risk management, compliance, and how foreign stablecoins will fit into the U.S. framework. Until then, companies will need to carefully plan their strategies, balancing innovation with regulatory demands.
As the stablecoins landscape takes shape within the U.S., entities like Canaan Inc. (NASDAQ: CAN) will be watching closely to see how the issues above are addressed.
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